The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Business

Dow tumbles more than 600 points after weak jobs report

by admin August 6, 2024
August 6, 2024
Dow tumbles more than 600 points after weak jobs report

Stocks tumbled for the second-straight day Friday as a weaker-than-expected jobs report and a dismal forecast from Amazon added to investor fears of a more substantial slowdown for the U.S. economy.

The Dow Jones Industrial Average closed down 611 points, or 1.5%. The S&P 500 dropped 1.8%, while the Nasdaq Composite lost 2.4%.

Early Friday, the Bureau of Labor Statistics reported that the U.S. added just 114,000 jobs in July — well below the 185,000 expected and down significantly from 206,000 in June.

Meanwhile, the unemployment rate climbed to 4.3%, from 4.1% — its fourth-straight monthly increase and its highest level since October 2021.

The market was already primed for losses as it opened following a negative quarterly earnings report from Amazon late Thursday. The e-commerce giant said customers were ‘continuing to be cautious in their spending’ amid a thinner financial cushion and the continued impact of higher prices.

The bad data kept rolling in as Friday wore on: The Commerce Department’s Census Bureau reported factory orders fell 3.3% in June, the biggest decline since April 2020 at the outset of the pandemic.

Friday’s sell-off pushed the Nasdaq index, which represents tech stocks, into correction territory, meaning it is now down more than 10% from an all-time high, set just a month ago.

Leading Friday’s pullback in stocks was Intel, which cratered 26% after announcing weak guidance and layoffs. Other big names seeing large declines included Prudential financial group, down 10% Booking.com, down 9%. Amazon also fell 9%.

In response to the ugly economic news, traders bought up U.S. Treasuries, which are seen as a safe-haven asset. That pushed the yield on the 10-year note down to about 3.79%, its lowest level since December 2023.

While the lower yield reflects economic distress, it was somewhat of a boon for homebuyers as mortgage rates, which track the 10-year yield, fell to 6.4%, their lowest level in more than a year.

Friday represented the market’s second-consecutive day of major declines. A day earlier, stocks saw heavy losses as they responded to other weaker-than-expected data, including a disappointing manufacturing output report and surprisingly high initial jobless claims.

Following Friday’s jobs report, many traders penciled in a 0.5% cut to the Federal Reserve’s key federal funds rate for the Fed’s next meeting in September.

The Fed usually acts in 0.25% increments — so by making a 0.5% cut, a growing chorus on Wall Street is betting that the Fed will be playing catch up by the time its Federal Open Market Committee (FOMC), which sets interest rates, meets again.

Earlier in the week, the FOMC announced it was keeping the fed funds rate at its current level of about 5.5% in order to continue to put pressure on inflation.

Claudia Sahm, a former Fed economist and the namesake of an economic rule that has predicted past recessions and which is now close to being triggered, said that while the new data are alarming, a true downturn is not yet inevitable.

“We are not in a recession now — contrary [to] the historical signal from the Sahm rule — but the momentum is in that direction,” Claudia Sahm, chief economist at New Century Advisors, said via email. “A recession is not inevitable and there is substantial scope to reduce interest rates.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Business is good in ‘Vacationland.’ It would be even better with more housing.
next post
Israel strike in Lebanon reportedly kills 4 Hezbollah operatives as region braces for possible Iran attack

Related Posts

Why an indicator that has foretold almost every...

July 25, 2024

American Eagle profit soars, but sales grow slower...

May 30, 2024

AI startups are snatching up San Francisco offices,...

December 9, 2024

Settlement reached in lawsuit between Ron DeSantis allies...

March 29, 2024

Tariffs or not, a Chinese baby products company...

May 21, 2025

Amazon surpasses Walmart in revenue for the first...

February 22, 2025

‘Make Bitcoin Great Again’: Trump and GOP’s presence...

July 30, 2024

Recalled cucumbers linked to at least 449 illnesses...

August 17, 2024

Southwest Airlines faces FAA audit over string of...

July 25, 2024

Nvidia’s CEO did a Q&A with analysts. What...

March 26, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Apple reveals complex system of App Store fees to avoid E.U. fine of 500 million euros

      June 30, 2025
    • Breakdown of NVDA’s Stock Price and S&P 500: Actionable Technical Insights

      June 30, 2025
    • Thom Tillis announces retirement from Senate after clash with Trump

      June 30, 2025
    • SCOOP: House Republican eyes bid for Thom Tillis Senate seat after Trump attack

      June 30, 2025
    • Dem delay tactic ends, debate begins on Trump’s ‘big, beautiful bill’

      June 30, 2025
    • GOP, Dem senators remain divided over Medicaid after Trump’s ‘big, beautiful bill’ vote

      June 30, 2025

    Categories

    • Business (1,272)
    • Politics (3,873)
    • Stocks (1,477)
    • Uncategorized (45)
    • World News (1,265)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved